Seed Funding: What It Is and How Indian Startups Use It

When a startup is just an idea on a napkin, seed funding, the initial capital that helps a startup move from concept to prototype. Also known as early-stage funding, it’s what lets founders hire their first engineer, build a minimum product, or run their first customer tests. This isn’t bank loans or personal savings—it’s money from people who believe in the team before there’s any real revenue. In India, this is often from angel investors, wealthy individuals who invest their own money in early-stage startups, or small venture capital, firms that manage pooled money to invest in high-growth startups. These investors don’t just write checks—they give advice, connections, and sometimes even office space.

Seed funding isn’t about big numbers. In India, it’s usually between ₹5 lakh and ₹2 crore. That’s enough to prove the idea works, not enough to scale nationwide. Founders who get it know they’re trading a piece of their company for speed. They’re not waiting for profits—they’re racing to find product-market fit before the money runs out. The best startups use this cash to answer one question: Would people pay for this? If yes, they get ready for the next round. If no, they pivot—or shut down. There’s no middle ground.

What you’ll find in the posts below are real stories from Indian founders who’ve walked this path. Some raised seed funding through networks. Others cold-emailed investors. A few got lucky with government schemes like Startup India. You’ll see what investors actually look for—not pitch decks full of buzzwords, but traction, team grit, and clear next steps. You’ll also find out why most startups fail at this stage, and how the ones that survive do it differently. This isn’t theory. It’s what happens before the hype begins.